Ethanol production stagnates as biofuel mandates grow

Cellulosic ethanol is made from switchgrass and other nonfood products. (AP Photo/Noble Foundation)

While the production of tight oil and natural gas in the United States has soared in the last two years, ethanol producers are only making slightly more of the biofuel than at the beginning of 2012, according to an annual ethanol study released Monday morning.

The Energy Information Administration said that U.S. ethanol production capacity has leveled off at about 903,000 barrels per day, most of it coming from the Midwest, which has more than 90 percent of the nation’s ethanol production capacity.

In the United States, refined gasoline currently contains about 10 percent ethanol, known as E10.

Natural gas: Bill would add natural gas-based ethanol to federal biofuels mandate

The federal Renewable Fuels Standard  requires refiners to mix 13.8 billion gallons of renewable fuels, such as ethanol, with gasoline this year. This target will move to 15 billion gallons by 2015.

In 2010, The Environmental Protection Agency approved the sale of E15, which contains 15 percent ethanol for cars made in 2001 or later, but its use has met resistance from private industry. The agency did not clear E15 for use in older vehicles, boats or other devices, such as lawn and garden equipment.

Automakers and other opponents of the mandate have said that cars are not equipped for the high concentrations of ethanol, and the current level of production of other biofuels does not meet the needed supply.

The Environmental Protection Agency had required refiners to use 8.65 million gallons advanced biofuels in 2012 to meet the requirement, but a federal court rejected this requirement, saying that the needed fuel sources did not exist.

The requirements call for a total of 16.55 billion gallons of renewable fuels, including biodiesel, corn-based ethanol, and other biofuels, to be purchased by refiners in 2013.

Last week, Texas lawmakers introduced legislation to allow ethanol and other transportation fuels produced from natural gas to compete with corn-based ethanol.

Read FuelFix’s ongoing coverage of the ethanol debate:

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